Bihar has reduced the maximum loan amount under its student credit card scheme from Rs 4 lakh to Rs 2 lakh, directing students to bank portals for larger loans, but has also extended the scheme’s validity until 2031, maintaining its role in financing higher education.
Bihar’s student credit card scheme has been tightened, with a report by InformalNewz saying the state has lowered the amount available through the card to Rs 2 lakh from Rs 4 lakh. For larger education loans, students will now be directed to apply through banks on the PM Vidya Lakshmi portal, according to the report, which said the change was set out in a notification from the Higher Education Department.
The shift narrows the role of the scheme, but it does not end it. The Bihar Student Credit Card, part of the state’s youth support programme, was designed to help 12th-pass students finance higher studies without collateral. Guidance published by education and finance sites says the scheme has typically covered tuition, hostel charges, books and laptops, and has remained one of Bihar’s main routes for students seeking low-cost borrowing for college.
Before the change, independent explainers from Paisabazaar and CollegeDekho described the scheme as offering loans of up to Rs 4 lakh, with concessional interest rates. CollegeDekho says the rate is 1% a year for Divyang, transgender and girl students, while other summaries say the scheme has been available to students in general, technical, professional and polytechnic courses at recognised institutions. The same sources note that repayment usually begins after the course ends and the student finds work.
The state has also kept the scheme alive for the longer term. According to the report cited by InformalNewz, Bihar has extended the programme for another five years, taking it through 2031. Applicants are said to be able to use district registration and counselling centres free of charge, while online application guidance published by MeriShiksha says the process continues through the state portal, where students are asked to keep identity papers, academic records, admission letters and fee details ready.
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